Compare Three Factors Such as Level of Diversification,MERs,management and Performance

question 39

Essay

Compare three factors such as level of diversification,MERs,management and performance of segregated funds,ETFs and mutual funds.Provide your own opinion as to the advantages or disadvantages.

Calculate and interpret profitability ratios such as net income margin and return on equity.

Calculate and interpret solvency ratios and understand their relevance to long-term financial sustainability.

Understand the implications of paying dividends and how it affects shareholders’ wealth.

Analyze and compute the earning per share (EPS) and price-earnings (P/E) ratios for investment appraisal.

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Definitions:

Total Investment

The sum of all expenditures made by a company or individual for acquiring or improving fixed assets, financial assets, and other business interests.

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the principal, charged by lenders to borrowers for the use of funds.

Expected Rate

An anticipated rate of return or growth, often used in the context of investments or economic forecasts.

Total Investment

The sum of all expenditures on capital goods by businesses and the government within a given period.